Berlin-based solar energy unicorn Enpal has surpassed €5 billion in asset financing commitments. This will help accelerate the adoption of solar panels, heat pumps, electric vehicle chargers, batteries, and smart meter gateways in private households across Europe.
While the company achieved this goal ahead of its schedule, this is a significant step toward its goal of reaching €10 billion in financing by 2027. Earlier this year, the company announced that it secured €1.1 billion in financing commitments.
We have already seen quite a number of startups raising capital to enhance renewable energy usage and adoption. Recently, British solar heat and power scaleup Naked Energy raised £17 million funding, and zolar, a digital platform for residential solar from Germany, has secured €100 million in funding.
Who invested in Enpal?
Enpal’s financing is split between facilities with banks and large institutional investors to finance leases, including BlackRock, ING, Infranity, and Pricoa Private Capital, and facilities for consumer loans to private households, provided by major partners such as Citi, Bank of America, Barclays and Credit Agricole CIB.
The company plans to further expand its impact across Europe, providing more households with access to affordable renewable energy. By continuing to grow its asset financing commitments and scaling its energy solutions, Enpal remains committed to supporting Europe’s climate goals and reducing carbon emissions across the continent.
Financing model to accelerate solar adoption
The widespread adoption of solar and heat pump systems was long hindered by the high upfront cost of hardware, with initial investments for a single-family home ranging between €20.000 and €40.000. Enpal initially sold solar hardware directly to consumers but quickly shifted to a financing model. This model uses Special Purpose Vehicles (SPVs) backed by banks and institutional investors to own and operate the solar systems, generating steady cash flows from consumers. Alternatively, homeowners can choose to finance the installations through consumer loans, much like car financing.
This financing model is transforming how energy is generated and consumed. By distributed energy production, Enpal’s systems empower individual households to generate their own electricity, reducing the need for large-scale fossil-fuel power plants and high-voltage transmission lines. This not only reduces pressure on the grid but also promotes energy independence and democratisation, as households shift away from reliance on a few large energy providers.
“Residential Solar as an asset class enables homeowners to play a key role in Europe’s energy transition without the usual hurdles” said Viktor Wingert, Co-Founder and Chief Investment Officer at Enpal. “Our financing model with €5 billion in commitments allows for the installation of over 500.000 distributed energy resources. This will bring 3 gigawatts of energy to the grid while saving one million tons of carbon dioxide annually in Germany.”
The team behind Enpal
Enpal was founded in 2017 by Mario Kohle, and co-founders Jochen Ziervogel and Viktor Wingert in Berlin. Mario grew up as a working class kid in the former GDR while Viktor immigrated to Germany with his parents as a child with a Russian working-class background. Together, they decided to establish Enpal with the vision of connecting humanity to become a renewable community.
Enpal’s suite of renewable energy products
The company plans to provide over 250,000 households to adopt solar energy and reduce their reliance on fossil fuels. Its range of renewable energy products includes:
- Photovoltaic (PV) systems that convert sunlight into electricity, reducing reliance on the traditional grid.
- Energy-efficient heat pumps that provide both heating and cooling for homes and use renewable electricity or geothermal energy.
- Energy storage systems that store excess solar energy in batteries for later use, maximise efficiency and ensure homeowners have power even during outages.
- EV charging stations that let homeowners to conveniently charge their EVs using clean, solar-generated electricity.
What we think about the startup
Enpal is likely to accelerate the adoption of solar and heat pumps across Germany. This not only empowers homeowners with cleaner energy options and potentially lower energy bills but also contributes to a greener future for the entire nation. By reducing reliance on fossil fuels and promoting energy independence, the unicorn startup’s innovative model paves the way for a more sustainable future for German homes.